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|HDBank has reported breakthrough performance in the fourth quarter of 2019|
The performance indicators in the fourth quarter of 2019 have shown a strong breakthrough by HDBank. In particular, net interest income reached VND2.888 trillion ($125.57 million), up 33.6 per cent on-year. Net income from the provision of services also increased strongly by 65.2 per cent which contributes to the total operating income (TOI) of VND3.344 trillion ($145.39 million), an increase of 25.8 per cent. Meanwhile, the total operating expenses and provision expenses for credit losses have been controlled steadily. As a result, the pre-tax profit of the fourth quarter of 2019 reached VND1.57 trillion ($68.26 million), an increase of 40.1 per cent compared to the fourth quarter of 2018.
For the whole year of 2019, consolidated net interest income reached VND9.747 trillion ($423.78 million), an increase of 27.5 per cent compared to 2018. Net interest margin (NIM) expanded sharply, increasing from 4.2 per cent at the end of 2018 to 4.8 per cent, which made HDBank one of the banks with the highest NIM on the market. Income from the provision of services increased strongly by 36 per cent to VND596 billion ($25.9 million). The strong growth of these main sources of income has helped HDBank’s TOI to achieve VND11.388 trillion ($495.13 million) for the first time in history, increasing by 20.6 per cent. Meanwhile, the provision expenses for credit losses have been controlled at a low level, thanks to the best asset quality in the industry. The operating costs to income ratio (CIR) continued to improve, reaching 44.6 per cent, significantly better than the 47 per cent of 2018.
By the end of 2019, HDBank’s pre-tax profit reached VND5.018 trillion ($218.17 million), increasing by 25.3 per cent compared to 2018 and is the highest level ever. After-tax profit reached VND4.020 trillion ($174.78 million), an increase of 25.6 per cent.
With such impressive results, HDBank is once again among the top banks in terms of profitability. Specifically, the return on average assets (ROAA) is over 1.8 per cent and the return on average equity (ROAE) is 21.6 per cent.
As of December 31, 2019, the total consolidated assets reached VND229.477 trillion ($9.98 billion). Owners’ equity reached VND20.381 trillion ($886.13 million), increasing by 21.1 per cent over the same period last year. Outstanding credit (including loans to customers and corporate bonds) reached VND153.004 trillion ($6.65 billion), higher than the average outstanding credit of the industry. In particular, the outstanding loans of the parent bank reached VND140.422 trillion ($6.1 billion), an increase of 18.1 per cent (in compliance with the growth as prescribed by the State Bank of Vietnam).
Last year, HDBank continued to focus on credit growth in priority areas, with well-controlled and highly effective risks such as high-tech agriculture, renewable energy, and loans for production and business, sponsoring small- and medium-sized enterprises (SMEs). The consumer finance segment, one of the three growth drivers of HDBank, besides the retail and SME segments, also recorded a breakthrough with an outstanding loan growth of over 18 per cent.
In addition to positive business activities, HDBank has pioneered the application of the best international standards of governance as well, including Basel II. In the past year, the bank was approved by the Governor of the State Bank of Vietnam to apply Basel II standards ahead of time and the CAR has always been much higher than the prescribed minimum.
With the above financial results, HDBank in 2019 maintained high and sustainable growth. In 2020, HDBank will continue to take the lead in technology trends, digital transformation, develop fintech and digital banking on the basis of international standards on safety and security, to bring satisfying experiences and earn customers' trust.